{"id":40775,"date":"2023-12-04T13:48:11","date_gmt":"2023-12-04T13:48:11","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=40775"},"modified":"2023-12-04T14:49:21","modified_gmt":"2023-12-04T14:49:21","slug":"why-cop28-crucial-steel-decarbonisation","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/why-cop28-crucial-steel-decarbonisation\/40775\/","title":{"rendered":"Why COP28 will be crucial for steel decarbonisation"},"content":{"rendered":"
Steel is one of the world\u2019s most widely used materials. Even though we have the solutions for steel decarbonisation, steelmaking remains one of the biggest emitters of CO2<\/sub>. It accounts for around 11% of global carbon emissions, and demand is rising. If we are serious about decarbonising our economies, we need to take urgent action on steel, now.<\/p>\n COP28<\/a> must be a turning point in our collective fight against climate change, and we are determined to make steel decarbonisation part of the discussion. Without urgent action, emissions targets will be impossible to meet, and the world could be faced with little choice but to drastically reduce steel consumption. This would leave us with the even greater challenge of building the required clean infrastructure with one hand tied behind our backs.<\/p>\n While targeted commitments on steel don\u2019t seem to be on the table at COP28, several potential outcomes could massively impact the steel industry\u2019s future. We hope to see a commitment to phase out fossil fuels, triple renewable electricity capacity, double energy efficiency, and invest in initiatives and infrastructure that will drastically cut emissions over the next decade. This is the minimum action we need to see for the climate and the steel transition.<\/p>\n Phasing out coal and building low-carbon infrastructure will have profound implications for the steel industry; around 70% of steel produced today is made from iron ore in coal-powered blast furnaces. The switch to electric arc furnaces and new ways of making low-carbon primary steel from iron ore is a huge task requiring mammoth quantities of investment both in new facilities and the infrastructure to power them. For those considering such investments, the decisions taken in Dubai will be a crucial driver. Business investors need long-term confidence and direction to base their decisions on.<\/p>\n While the headlines are scary, the good news is that much of the technology needed for steel decarbonisation already exists. This might mean switching from making primary steel to steel recycling for some steelmakers.<\/p>\n The United States has led the charge, with nearly 80% of domestic steel coming from scrap-based steel production. In countries and markets where a switch from iron ore to using scrap metal as the primary source of new steel is viable, we need to see a laser focus on steel recycling. This means investing in renewable energy to power electric arc furnaces, delivering high-quality recycled steel and setting ambitious standards and targets to improve the quality and efficiency of steel recycling.<\/p>\n There are many markets, though \u2013 particularly in Asia, Latin America, and Africa \u2013 where scrap steel won\u2019t be a viable way to meet demands. These markets are responsible for most of the global steel production, with demand increasing as societies grow wealthier.<\/p>\n To decarbonise steel production in China and India, as well as for those sectors where customer demand or security of supply leads to a focus on new steel, we need to see faster progress towards technology that can deliver close to net-zero steel from iron ore. Technology is developing rapidly, with new plants expected to come online before the end of this decade.<\/p>\n However, both finance and demand for net-zero steel need to be in place to speed up progress.<\/p>\n To highlight demand, Climate Group<\/a> launched SteelZero<\/a> in 2020. It\u2019s a global initiative that brings together leading corporates to speed the decarbonisation of the steel industry.<\/p>\n Organisations that join SteelZero make a public commitment to buy and use 50% low-emission steel by 2030, setting a clear pathway to using 100% net-zero steel by 2050. We\u2019re driving demand for responsibly produced and sourced steel by harnessing their collective purchasing power and influence.<\/p>\n At COP28, there are three main areas where we hope to see progress that will unlock steel decarbonisation.<\/p>\n Firstly, policy barriers to increasing renewable energy production need to be addressed. Research by Climate Group, released at COP28, shows that some of the world\u2019s largest economies still have common policies and barriers that effectively slow down the roll-out of renewable electricity. From public sector or concessionary monopolies on electricity supply to restrictions on power purchase agreements, bureaucracy and vested interests are huge challenges.<\/p>\nWithout action, steelmaking will consume half of the total remaining 1.5\u00b0C carbon budget by 2050<\/h3>\n
Demand for green steel is out there \u2013 COP negotiators can help speed up the transition by addressing barriers to investment and stimulating demand<\/h3>\n
A call to action: Improving access to renewable energy, empowering subnational governments and ensuring a just transition<\/h3>\n